Portugal raises €249m in debut offshore yuan bond
Portugal has issued its first “Dim Sum” bond, raising €249 million in offshore yuan, expanding its funding base beyond Europe at a time of high interest rates.
Portugal has carried out its first issuance of offshore renminbi-denominated bonds, raising the equivalent of €249 million, in a move that diversifies its funding sources and broadens its investor base beyond traditional European markets.
The transaction, executed on April 9 by the public debt agency IGCP, involved a private placement of 1.99 billion yuan (CNH) with an eight-year maturity and a fixed interest rate of 1.765%. The bonds — known as “Dim Sum” bonds — are issued outside mainland China and targeted at international institutional investors, particularly in offshore financial centres such as Hong Kong.
After hedging currency and interest rate risks, the effective financing cost was below that of comparable Portuguese government bonds in the secondary market, highlighting favourable funding conditions despite elevated interest rates in Europe.
The issuance forms part of Portugal’s €15 billion Euro Medium Term Notes (EMTN) programme and its 2026 funding plan, which foresees up to €2.5 billion in such instruments. So far this year, the country has raised €599 million through four EMTN operations, reflecting a strategy of diversifying instruments and markets.
For investors, the deal underlines Portugal’s effort to tap alternative pools of capital and reduce reliance on euro-denominated debt markets, while taking advantage of demand for renminbi assets in global financial centres.
